Budget-in-Brief For the year beginning October 1, Annual Operating and Capital Budget

Transcription

1 Budget-in-Brief For the year beginning October 1, Annual Operating and Capital Budget

2 Elected Officials and Management Staff Elected Officials Malcolm P. Duncan, Jr. Mayor Mayor Pro Tem Kyle Deaver Council Member Wilbert Austin Council Member Alice Rodriguez Council Member John Kinnaird Council Member Toni Herbert Management Staff City Manager... Dale Fisseler, P.E. City Attorney... Jennifer Richie City Secretary... Patricia W. Ervin Municipal Court Judge... Chris Taylor Assistant City Manager... George Johnson, Jr. Assistant City Manager... Wiley Stem, III Assistant City Manager... Jack Harper, II Airport Director... Joel Martinez Budget Manager...June Skerik Building Official... Randall Childers Convention & Visitors Director... Elizabeth Taylor Finance Director... Janice Andrews Fire Chief... John Johnston Health Director... Sherry Williams Housing Director...Jeff Wall Human Resources Director... Gary Johnson Information Technology Director... James Brown Library Director... Unfilled Municipal Information Director... Larry Holze Parks and Recreation Director... Rusty Black Planning Director... Clint Peters Police Chief... Brent Stroman Public Works Director... Octavio Garza Ranger Hall of Fame Director... Byron Johnson Transit Manager... John Hendrickson Utilities Director... Joseph Bernosky Cameron Park Zoo Director... Jim Fleshman 2

3 Table of Contents Elected Officials and Management Staff... 2 Organization Chart... 4 City Manager s Letter... 5 City of Waco Goals... 6 Budget Highlights... 7 Revenues and Expenditures Summary Graphs...11 General Fund Comparison of Services By Function Revenue and Expenditure Summary Graphs Funds Summary Capital Improvements Program Budgeted Positions Summary Where to Go for Additional Information

4 Citizens Mayor & City Council Policy Mayor Malcolm P. Duncan, Jr. Mayor Pro Tem Kyle Deaver Wilbert Austin, Alice Rodriguez, John Kinnaird, Toni Herbert City Attorney Jennifer Richie City Manager Dale A. Fisseler, P.E. City Manager General Administration Internal Audit Municipal Information City Secretary Patricia W. Ervin Municipal Court Judge Chris Taylor Jack Harper, II Assistant City Manager Budget Finance Inspection/ Code Enforcement Planning Public Works Engineering/GIS Traffic Streets Wiley Stem, III Assistant City Manager Animal Services Fire Information Technology Parks & Recreation/Golf Course Police Purchasing / Fleet / Facilities Solid Waste Texas Ranger Museum Water Utilities 4 George Johnson, Jr. Assistant City Manager Cameron Park Zoo Convention & Visitors Services Economic Development Health Housing Human Resources Library Waco Regional Airport Waco Transit

5 October 1, 2014 To The Citizens of Waco: It is my privilege as your City Manager to present a Budget-in-Brief of our recently adopted fiscal year Budget. Our budget is the product of a great deal of reflection, coordination, and discussion. The budget is the major annual planning effort because it funds the many excellent services that we provide. The City of Waco is committed to the efficient delivery of quality products and services to its citizens. This commitment is the foundation behind policy decisions and priorities that ensure constructive and well-formulated strategic plans for the growth of our city. This budget continues to focus on citizens interests expressed through goals established by the Council. Our objectives in preparing this budget were: Meet the Council s stated Goals Adequate funding to ensure quality customer service to our citizens at all levels of our organization Promote a safe and positive environment to improve the culture and quality of life for our citizens Maintain fund balances by the end of FY that meet our stated financial policies Though we are faced with a number of challenges, the staff is committed to help make the City of Waco a wonderful place to live. Sincerely, Dale A. Fisseler, P.E. City Manager 5

6 City of Waco Values and Goals Values Equal Access to All Services and Benefits Customer/Regulation Friendly in all Actions and Interactions by the City of Waco Think and Act Systemically to Build a Healthy Community Goals Strategic Intent I High Quality Economical City Services and Facilities Strategic Intent II Aggressively Competitive Economic and Community Development Strategic Intent III Safe, Environmentally Sound, Pedestrian Friendly Community Strategic Intent IV Improved Housing Options, Opportunities, and Conditions Strategic Intent V Enviable Culture and Quality of Life Strategic Intent VI Effective Policy and Administration Strategic Intent VII Market Waco Internally and Externally 6

7 Budget Highlights Total Operating Budget The adopted operating budget is $211,386,008 an increase of 4.2% compared to the adopted operating budget of $202,877,913. Major funding items include: A 2.0% salary increase for all regular full and part time employees $1,250,000 for the Economic Incentive Fund $20,765,840 for Fire Services $32,879,304 for Police Services $40,155,199 for Water Services $21,231,341 for Wastewater Services $16,141,842 for Solid Waste Services $12,296,946 for Employee Health Insurance Services The City of Waco is committed to the efficient delivery of quality services to its citizens. This commitment is the foundation behind policy decisions and priorities that ensures constructive and well-formulated plans for the growth of our City. We are committed to a balanced budget that provides the desired services our citizens expect while at the same time continuing our economic development efforts throughout the city. The state of the economy is always a driving force that dictates most of the challenges we face each year when starting the budget process. Our current fiscal condition is stable due primarily to improvements in several revenue sources and careful management of expenditures. However, the uncertainty about funding levels from some of our existing federal and state grants; ever increasing expenses, especially health insurance; employee compensation; staffing needs due to expanded operations and departmental capital needs were areas of consideration. A major challenge again this year was funding health insurance. Claims for this year are projected to be within budget, but our analysis of future costs predicts a 3% to 8% increase in medical and prescription claims. To fund the projected shortfall, dependent premiums for active employees are increasing. These steps, along with new and continued wellness program initiatives, should stabilize the costs of this important employee benefit. Another major challenge was prioritizing the current and future capital needs of the City. Each year, these needs continue to grow as the City s infrastructure ages and services expand in order to serve economic development goals. Beginning in fiscal year , the City incorporated initiatives to fund capital needs with cash rather than bond proceeds. While these initiatives will ultimately result in interest savings and money being readily available for anticipated significant capital spending, pressure is placed on current revenues to meet both current and future needs, which were previously funded by debt. The Capital Improvements Program (CIP) includes continued improvements for streets, building renovations, fire, water and wastewater as we provide for the future needs of our citizens. The initiative of funding capital programs in operations that are normally bonded is continued with the long-term goal of totally funding the CIP with cash. 7

8 Budget Highlights Salary and Wage Increases For FY , we are recommending a salary package with a 2% pay adjustment for all employees. Civil service employees will also receive a job class step increase, if eligible. Salary is only one aspect of compensation. Employee benefits include health insurance, longevity pay, disability coverage, life insurance and a 2 to 1 match for the Texas Municipal Retirement System (TMRS). The full TMRS contribution rate required for 2015 decreased slightly from the 2014 rate. Cost-of-living adjustments for retirees are considered on an ad hoc basis. Our funded ratio decreased slightly due to changes made by TMRS and is currently 85.0% while the unfunded liability also increased to $61.6 million. Total Employee Positions Departments continually evaluate their staffing needs as positions become vacant during the year, review positions that have been vacant for a considerable amount of time and assess operations for efficiencies in the workforce. As a result, positions have been eliminated during the year. This budget reflects a net increase of 13.5 full time equivalent positions over last year s budget even though a total of approximately 21 employees were added. Most of these employees were added in the vital Public Safety functions of Fire and Police. We will continue to do the things that get the citizens better customer service and quality city services in a proactive manner. General Fund The General Fund revenue budget of $110,929,866 is based on an increase in revenues of 7.3% over last year s adopted budget, due mainly to the increase from ad valorem taxes, sales taxes and court fines. No tax rate adjustment is included for FY Most of the additional revenues provide for salary and benefit adjustments, increased funding of operational activities, increased funding of capital projects with cash and additional staffing in Public Safety and Animal Shelter. General Fund Revenues The General Fund is balanced principally through the following factors: Growth in net property tax assessments New construction and increased valuations contributed to the proposed 6.77% growth in the property tax base. New construction assessments are proposed at a healthy increase of $141 million for FY , but is somewhat offset by a $101 million increase in exemptions. Sales Taxes The volatility of retail sales makes it challenging to project this revenue with any certainty. In a normal year, sales tax revenues are expected to be at least slightly higher than the previous year and be a fundamental source for balancing the budget. We are expecting to end the current year significantly over budget. The trend for sales tax receipts has been steady for the last three years, which we believe is due to good employment numbers and new development in our City over the past few years. This revenue is extremely volatile and is affected by so many factors over which we have no control. Our preference is to be conservative in this area of the budget and use any excess receipts for one-time purchases towards the end of the fiscal year. In keeping with that philosophy and expectations of the current trend continuing, we are proposing sales tax to increase 8% over last year s adopted budget. 8

9 Budget Highlights General Fund Expenditures The largest increase in General Fund expenditures is for the initiative to decrease the City s debt by using cash for capital projects that previously would have been funded with debt. Although there are few additions included for FY , the major changes in the General Fund are: Salary adjustment $1.3 million Increased cash funding for capital needs $3.4 million Staff changes for Fire $585,000 Increased funds for additional dispatchers in Police $371,000 Added funds for Capital Equipment Replacement Fund $100,000 Added funds to bring minimum salary to $9.55 per hour $67,000 Added funds to replace loss of grant funding in Housing, Inspections and Police $253,000 Added replacement equipment for Police and Fire $50,000 Increase in appraisal district services expense $120,000 Fee Revenues Most revenues have remained relatively flat for a number of years. This trend is changing and we are experiencing gradual growth in a number of areas. We are optimistic about the trend continuing and have reflected that in the proposed revenues. User fees were reviewed and subsequently revised, added or deleted for Cameron Park Zoo, Fire, Health, Parks and Recreation, Planning, Solid Waste, Texas Ranger Hall of Fame & Museum, Water, and Wastewater. All utility service rates and Solid Waste service rates will remain the same as the current year. Utility Rates No service rate increase is necessary for water or wastewater customers for FY Residential, commercial, and industrial water and wastewater customers have only had one rate increase in the last seven years. Solid Waste residential, commercial, and roll-off rates will remain the same for FY The landfill charge for non-citizens and self-hauling entities was increased. Capital Improvements Program The adopted FY C I P (Capital Improvements Program) is $18,953,000 for General Government and Street/Sidewalk Improvements, Wastewater Improvements and Water Improvements. 9

10 Revenue Summary Percent Adopted Total Sales Tax 31,918, % Property Tax 54,545, % Business Taxes 9,969, % Permits, Fines & Charges 4,689, % Utility Funds 68,372, % Other Funds 32,385, % Interest on Investments 263, % Miscellaneous 3,261, % Intergovernmental 5,355, % Transfer from Surplus 625, % Total Operating Revenues 211,386, % Capital Improvements Program 14,415, % Total Revenues 225,801, % Expenditure Summary Percent Adopted Total Salaries & Benefits 96,675, % Services & Supplies 50,647, % Other Expenses 17,564, % Contracts with Others/Contributions 3,411, % Transfers & Billings 845, % Capital Outlay 8,160, % Debt Service 29,542, % Total Operating Budget 206,848, % Capital Improvements Program 18,953, % Total Expenditures 225,801, % 10

11 Revenue Summary CIP 7% Sales Tax 14% Other Funds 14% Property Tax 24% Utility Funds 30% Fees, Permits, Charges, Other 6% Business Taxes 5% Expenditure Summary Salaries & Benefits 43% CIP 8% Operating Expenses 32% Debt Service 13% Capital Outlay 4% 11

12 General Fund The General Fund is the largest of all City funds and the fund that attracts the most public attention and interest, because of its two major revenue sources sales tax and property (ad valorem) tax. The following chart illustrates the value citizens get from the $110+ million General Fund for their property tax dollars. Cost of City Services ($ /100 Valuation) Based on an average home value of $125,952 with a homestead exemption of $14,462 a household pays $ in city taxes for the year, or $72.12 per month, to support these city services: 24 hour Police Protection 24 hour Fire Protection Maintenance of 600 miles of paved and unpaved public streets Traffic signals and street lighting Four library facilities and services which circulates books, video & audio tapes 1,500 acres of developed Parks Park facilities including softball fields Recreational facilities & activities including jogging tracks and skate parks Animal Control and Animal Shelter services Building Inspections & permitting services Code Enforcement Services Emergency & Disaster Management Municipal Court Economic Development Partial subsidies for: Public Health Services Cameron Park Zoo In comparison, the cost of: Preferred Cable TV is $ plus tax per month. The average cost for electricity is $96.28 / 1000 kwh per month. An average Natural Gas bill was $49.65 per month for the year ending July One night at the movies for a family of four with soft drinks and popcorn is $40 - $50. Information provided by Grande Communications, powertochoose.org, Atmos Energy, Starplex Cinema and McLennan County Central Appraisal District. 12

13 General Fund by Function General Govt 12,718,321 Leisure Services 13,419,451 Public Safety 60,251,171 Public Srvcs/ Works 8,836,903 Misc 15,704,020 Total 110,929,866 Leisure Services 12% Public Safety 54% General Govt 12% Misc 14% Public Srvcs/ Works 8% 13

14 Gene ral Fund Reve nue Summary Percent Adopted Total Sales Tax 31,918, % Property Tax 49,718, % Business Taxes 13,015, % Licenses & Permits 944, % Intergovernmental 1,580, % Charges for Services 1,886, % Fines 2,266, % Interest on Investments 75, % Miscellaneous 9,386, % Other Financing Sources 137, % Total General Fund Revenues 110,929, % Gene ral Fund Expenditure Summary Percent Adopted Total Salaries & Benefits 72,954, % Services & Supplies 19,091, % Other Expenses 1,489, % Contracts with Others/Contributions 11,843, % Transfers & Billings 2,660, % Capital Outlay 2,890, % Total General Fund Expenditures 110,929, % 14

15 General Fund Revenues Property Tax 45% Business Taxes 12% Licenses, Permits, Charges, Fines 6% Sales Tax 29% Miscellaneous 8% General Fund Expenditures Capital & Transfers 5% Salaries & Benefits 66% Operating Expenses 29% 15

16 Funds Summary General Fund 110,929,866 Special Revenue Funds Health Fund 4,028,275 Abandoned Motor Vehicles 220,000 Public Improvement District #1 976,502 Street Reconstruction Fund 3,887,972 Enterprise Funds Ranger Hall of Fame Fund 1,354,003 Waco Regional Airport Fund 1,410,139 Convention Center & Visitors' Fund 3,926,878 Cameron Park Zoo Fund 3,647,635 Cottonwood Creek Golf Course 1,939,363 Waco Transit Fund 6,288,383 Utility Funds Water Fund 40,155,199 Wastewater Fund 21,231,341 Solid Waste Fund 16,141,842 WMARRS Fund 7,126,815 Internal Service Funds Risk Management Fund 3,760,034 Engineering Fund 2,047,701 Fleet Services Fund 1,800,884 Health Insurance Fund 12,296,946 Capital Improvement Fund 18,953,000 Less Interfund Transfers (36,321,521) Total Fund Summary $225,801,257 16

17 Capital Improvements Program Planned Expenditure Summary by Function Airport 225,000 City Manager's Office 17,500 Facilities 355,000 Fire 1,000,000 Fleet Services 350,000 Total General Government 1,947,500 Street Improvements 2,627,500 Wastewater Improvements 6,231,000 Water Improvements 8,147,000 Total C I P 18,953,000 17

18 Personnel Summary By Department (Full Time Equivalents) General Fund Health Fund (cont) City Managers Office Public Health Nursing Animal Shelter S T D Services City Secretary HIV/AIDS Finance Purchasing Enterprise Funds Information Technology Street Reconstruct Fund Legal Services Ranger Hall of Fame Fund Municipal Court Airport Fund Planning Services Convention Fund Human Resources Cameron Park Zoo Fund Inspection Services Cottonwood Creek Golf Streets & Drainage Traffic Services Utilities Emergency Management Water Office Fire Water Distribution Police Water Treatment Library Utilities Laboratory Municipal Information Meter Shop Housing Services Wastewater Collection Facilities Environmental Services Parks and Recreation WMARRS Solid Waste Services Total General Fund Internal Service Funds Health Fund Risk Management Health Administration Engineering Environmental Health Fleet Services OSSF Health Insurance Grant Funds Total All Funds 1, ,

19 Where to Go For Additional Information This document, produced by the City of Waco Budget Office, is designed to provide summary information from the City s adopted budget. More detailed information on the contents of this book can be found in the Budget. The Budget, as well as additional information about the City of Waco, can be found on the City s Web Site, To Find Information on These Topics Financial Policies Taxes, Revenues & Expenditures Program Changes Including New Programs, Additional Funding Staffing and Organizational Structure and Changes Departmental Plans Debt Schedule Capital Projects Look in the Budget Document or on The City s Web Site Financial Management Policy Statements City Manager s Letter Budget Message Tax Structure Budget Summaries City Manager s Letter Budget Message Individual Department Summaries Organization Chart Budget Message Personnel Summary Individual Department Summaries Budget Message Individual Department Summaries Debt Service Section Capital Improvements Program Section Glossary of Terms Fees Appendix A Appendix B - Fee Schedule 19

20 If you have any other questions about city services Call Waco Central (254) 299-CITY (2489) Or contact the Budget Office at (254) City of Waco Budget Office Post Office Box 2570 Waco, TX